Pasay–(PHStocks)–Cebu Pacific Air Inc.‘s (PSE: CEB) consolidated revenues grew by 16.7% to PhP33.935 billion for the year ended 31 December 2011, driven by increased passenger volume and improved take up from ancillary products.

Consolidated operating expenses increased by 34.3% to PhP30.408 billion in 2011 from PhP22.639 billion in 2010. Fuel costs, which constitute about 50% of consolidated operating expenses, grew 55.2% to PhP15.221 billion from PhP9.808 billion in the previous year. This surge in fuel cost is driven by a 39.3% increase in global market prices of aviation fuel.

As a result, the Company’s consolidated pre-tax core net income for the year ended 31 December 2011 decreased by 41.8% from PhP5.781 billion to PhP3.363 billion. Amid this challenging cost environment, the company was able to sustain robust EBITDAR and pre-tax core income margins of 23.3% and 9.9%, respectively.

Consolidated net income was PhP3.624 billion for the year ended 31 December, a decline of 47.6% from PhP6.922 billion for the year ended 31 December 2010, but still a healthy 10.7% margin.

Balance Sheet

As of 31 December 2011, Cebu Pacific Air’s consolidated balance sheet remains strong, with a net debt to equity ratio of 0.57. Consolidated assets grew to PhP55.681 billion from PhP49.937 billion as of 31 December 2010, as the company expanded its fleet. Equity increased to PhP19.166 billion from PhP17.907 billion in the previous year, while book value per share amounted to PhP31.63 as of 31 December 2011 from PhP29.20 as of 31 December 2010.